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Market concentration and competition in OECD mobile telecommunications markets

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  • Nakil Sung

Abstract

This study analyses the progress of market concentration in OECD member states' mobile telecommunications markets and evaluates the relationship between market concentration and performance. Using annual panel data from 24 OECD member states for the 1998-2011 period, the study estimates regression equations for market concentration, mobile prices and profits. The empirical results indicate that the more concentrated the mobile market, the higher the prices and profits, providing support for the market power hypothesis. If this hypothesis holds, then market concentration can be a useful indicator of market performance. On the other hand, the applicability of the hypothesis is unclear for the second half of the sample period. The results provide evidence that regulatory policies influence the structure and performance of mobile markets.

Suggested Citation

  • Nakil Sung, 2014. "Market concentration and competition in OECD mobile telecommunications markets," Applied Economics, Taylor & Francis Journals, vol. 46(25), pages 3037-3048, September.
  • Handle: RePEc:taf:applec:v:46:y:2014:i:25:p:3037-3048
    DOI: 10.1080/00036846.2014.920480
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    References listed on IDEAS

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    1. Cabral, Luis M. B., 2000. "Introduction to Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262032864, December.
    2. Oecd, 2007. "Mobile Multiple Play: New Service Pricing and Policy Implications," OECD Digital Economy Papers 126, OECD Publishing.
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    Cited by:

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    2. Thornton Matheson & Patrick Petit, 2021. "Taxing telecommunications in developing countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(1), pages 248-280, February.
    3. Massimo Dragotto & Marco Magnani & Paola Valbonesi, 2021. "Consumer inertia and firm incumbency in liberalised retail electricity markets: an empirical investigation," "Marco Fanno" Working Papers 0277, Dipartimento di Scienze Economiche "Marco Fanno".

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